Sector Program Loan

Period (Date of Loan Agreement):
    December 24,1998


Amount Provided:
    100,000 million Yen

Executing Agency:
    National Development Planning Agency (BAPPENAS)

As the loan provides Indonesia with the foreign currency for importation, it will contribute, as an immediate effect, to improving the deteriorating international balance of payments of Indonesia. It will also contribute to the achievement of development targets, for the counterpart fund of the loan is to be used for development projects.

The development projects to be financed this time are high priority projects of the Government of Indonesia in the fields of residential and educational environment development, basic social welfare support, and rehabilitation and augmentation of transportation facilities, while the counterpart fund of the earlier Sector Program Loan concluded in October was to be used in the field of agriculture, such as rehabilitation and construction of irrigation facilities and development of infrastructure in rural villages.

The implementation of these labour-intensive projects will contribute to improving the basic human environment, to strengthening productive bases and to generating immediate employment in Indonesia which is suffering from the large-scale unemployment caused by the economic crisis.